Why are Athlon XP prices at retailers less than AMD's price in quantities of 1000?

[MisterMac9]

The price of Athlon high end XP's in quantities of 1000 listed at AMD's site are higher than the price of one unit at retailers like Newegg. How do they do that? Surely they don't sell these at a loss?

 

[XFreebie]

they obviously don't update that part of their website often. and technically since they lost money the last 2 quarters, they are selling at a loss.

 

[MisterMac9]

>>they obviously don't update that part of their website often<<

It was updated today to add the 2100+ to the list. The 2000+ for example is listed as $339 in quantities of 1000 on AMD's site. Newegg's price is $233 oem and $255 retail box.

 

[DiamondFire13]

Well, AMD will never be selling their processors at a loss, they will always be making money by selling them . They have in fact spent tons of money on hammer research, and fab upgrades for the .13 process. That is where the money went.

 

[CurtOien]

Newegg buys more than 1000 at a time or buys them from someone else who does.
Prices at this level are significantly lower.

 

[Zap]

Curt is right. Most retailers probably do not buy directly from AMD/Intel. They purchase them grey-market from companies who do buy direct. The companies that do buy direct buys the CPUs in much higher quantities, such as 10,000 unit. I'm guessing also that most of these companies are actual computer makers who buy whatever quantity of CPUs to get the lower price, and then dumps the unused CPUs on the grey-market at cost (which is less than 1000 unit).

 

[Boonesmi]

any big company with lots of clout gets big discounts from AMD

then the cpu find there way onto the market